A letter sent yesterday to the Telegraph Journal with the references. Time to Stop Strip and Ship It is time to talk royalties -- real royalties. Quebec is developing Anticosti Island. Corridor Resources is there so they are prepared to pay the people of Quebec a 35% royalty rate on production over 3.5mmscf/d and when natural gas sells for $10mmscf. The Royalty Rate here is 5.5% and Corridor Resources will not pay Corporate Tax until 2022. Corridor is selling 50% of base production for US$11.74/mmbtu on the Algonquin Citygates market for the five months from November 1 to March 30. All other NB natural gas is sold there on an open daily market. I do not think for a minute this set-up is Corridor’s doings. The first 300bscf was discovered in 1995. That was a huge find but it just kept growing! Compare, the Sable Island discovery of 3tscf to Corridor’s 67tscf! I think, every government since 1995 has hid the size and potential our natural gas resource. I also think, it is time to start collecting a 35% Royalty Rate and the corporate tax – forget what is behind. If that had to be “studied” that would take another 10 years! PCS is a 50/50 partner in all the natural gas wells on the McCully Field except one. If that deposit of potash was in Quebec, they would be paying a 12 to 16% Royalty Rate and tax on income earned. PCS continued production while they were expanded. Strip and ship has to stop -- time for real royalties and corporate tax to kick in.
Posted on: Fri, 05 Dec 2014 11:42:11 +0000
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